Leveraging Data to Increase Customer Loyalty

The Overview

A Perks Program to Increase Loyalty

During or after the customer sets up their tech device, they can enroll in a free program to access exclusive features/perks and get free supply replenishments for the first six months. The program aims to increase customer loyalty, cross-sell other products, and give value beyond the sale.

What the Data Told Us

An Empathy Study revealed that customers don't use or understand the perks after enrolling. The customer does receive two Quick Start Guide (QSG) emails that showcase 2-4 different features. PowerBI data revealed that the two emails' engagement metrics were 50% below the company average.

Another study revealed that existing customers who use the perks feel they are getting more value after their purchase than competitors, which builds loyalty. Therefore, it increases the Customer Lifetime Value (CLV) because they continue purchasing new or replacement products.

The Challenge

How can we improve the engagement rates so customers start using and continually use the features to grow customer loyalty and, eventually, CTV?

The Assessment

  • The existing emails list a few perks with an icon and one or two sentences providing a brief description. With little to interact with, it explains the low engagement rates.

  • All the features link to the same landing page, where you must scroll down to see them. Neither have enough detail to quickly convey how they work.

  • Since most customers don't understand how to use the perks, it's imperative to show them.

  • The perks copy is more company speak and not about how it benefits the customer.

The Recommendations

To be applied to both emails and landing page(s):

  1. Re-write the perks descriptions to show the customer "what's in it for me?" and how it can improve their experience and save time and money.

  2. Show them how to use the perks by creating easy step-by-step illustrations or animated gifs. Then include a CTA to watch a quick demo video on the landing page if they need more guidance.

  3. To drive intrigue, mention how many other customers enrolled in the perks program (e.g., Join the other 6 million customers who saved time...). Customer ratings and reviews can also be used to increase credibility.

  4. Re-design the landing page to eliminate the need to hunt for the perks descriptions and instructions. Or create dedicated landing pages for each perk/feature. Either option also lends the opportunity to improve SEO.

The Results

  • Before, the email engagement metrics were 50% below the company average. Applying the recommendations, the emails exceeded the company average by 3%.

    • It was achieved by re-writing customer benefit copy, adding engaging and informative graphics, and adding the video to the re-designed landing page.

    • The next phase is creating a dedicated landing page for each perk with more interactive content.

    • The Empathy Study will occur again in 2024 to see if the 'don't use or don't understand' rate decreased.